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Rosneft Boosts Investment in Venezuela

Russia's top oil producer Rosneft is to invest another $500 million, as it raises its stake in the Petromonagas joint venture in Venezuela's Orinoco Belt region to 40%, Venezuela's President Nicolas Maduro said. That is the maximum stake foreign partners are allowed to hold in joint ventures with Venezuelan state oil firm PDVSA, Reuters reported. "Today we are going to sign (for) an additional investment of $500 million in the Orinoco belt from Rosneft, which is going to raise its participation up to 40%," Maduro said in comments broadcast live from the region. Rosneft originally had a 16.7% stake in the Petromonagas venture. Reuters reported last June that PDVSA and the Russian oil major were negotiating a financing deal under which Rosneft would lend its South American counterpart $5 billion, a source close to the negotiations said. The announcement comes as oil-dependent Venezuela is lobbying with members of the Organization of Petroleum Exporting Countries and non-OPEC Russia to freeze oil production as part of efforts to boost sagging prices.